15 Cheapest Places to Retire Abroad in 2017

On the lookout for the cheapest places to retire abroad? Don’t worry, you’re not the only one. Retiring abroad on a white sandy beach might be a dream, or it can be a necessity. None of us have the nest eggs our parents did, and living in the US isn’t getting any cheaper.

Luckily, you can have those white sandy beaches and an affordable retirement at the same time, if you know where to move. There are two main ways to find the cheapest places to retire abroad:

Look for developing economies that offer all the amenities a western expat needs.

Look for western countries where the housing market has become very affordable.

But you don’t need to do the legwork yourself. We’ve got the exclusive on the best ones around the world. Here are 15 of the cheapest places to retire abroad, ranked by affordability.

15. Sliema, Malta

Sliema is world famous for its consistently warm, but not sweltering, sunny weather. You can rent a 1-bedroom apartment outside of city centre for 557 euros, on average. It’s a great place to retire if you like the outdoors, and you can take plenty of short trips to other great places around the country, such as Valletta, a UNESCO World Heritage site.

Cost of Living Index: 74.92

14. Naples, Italy

Naples is the third largest city in Italy, with much milder winters than Rome. With it you get access to world-class opera, a prominent view of Mount Vesuvius, and more. According to Numbeo, a single person living in Naples would spend about $771 a month altogether before rent. Manage to purchase a home, and you’ll be looking at very low monthly expenses throughout retirement.

Cost of Living Index: 71.69

13. Marseille, France

Marseille is France’s second largest city, on the southern coast of the country. It has a Mediterranean climate, with mild, humid winters and warm summers. It’s officially the sunniest major city in France, with over 2,900 hours of sunshine. Rent in Marseille is very affordable for European standards, running only 480 euro a month for a one bedroom apartment outside of city centre. If you’re looking to buy, you can get a move-in-ready one-bedroom apartment with a view of the sea for $145,000.

Cost of Living Index: 69.46

12. Panama City, Panama

Panama City is one of those places where you can spend a lot or a little, depending on how much you want to integrate into local life, food, and culture. An expat with little know-how can spend $40 on a meal for two, or $9.50, depending on where you go.

If you’re concerned about healthcare in retirement (aren’t we all?), Panama City gives you access to top international providers, with both public and private healthcare systems available. Regardless of which you choose to use, it will come at a fraction of the cost of healthcare in the US.

Cost of Living Index: 62.53

11. San Jose, Costa Rica

San Jose, Costa Rica is a great retirement locale for a lot of reasons. Nestled in the Central Valley of the country, San Jose has all the basics you’ll need for Pura Vida, including medical care, shopping, and an international airport. You can get reasonably fast internet (60 mbps or more) for less than $50 a month, great if you want to run an online business in retirement.

Cost of Living Index: 61.67

10. Valencia, Spain

Despite being in Europe, the cost of living in parts of Spain is surprisingly low. Valencia is one great example, where a single person can get by on $631/month before rent. And housing itself is not expensive, thanks to the 2008 property crisis. You can find affordable apartments in city centre for a song, or go all out and buy a place. Valencia has great weather year-round, and many other great retirement attractions besides affordability.

Cost of Living Index: 59.19

9. Phuket, Thailand

If you picture yourself retired on a white sandy beach and don’t mind humidity, Phuket is the place to go. It’s a prime destination in Thailand for tourists and expats alike, and very affordable. Thinking to plant roots and buy a home in Phuket? The going rate averages 42,333 Thai baht per square meter (about $1,240).

Cost of Living Index: 54.52

8. Córdoba, Argentina

Cordoba is a safer, quieter alternative to living in Argentina’s capital, Buenos Aires. It’s also much more affordable. Even a family of four can get by with about $2,000/month in expenses before rent in Cordoba. Prices for everyday expenses are very reasonable once you get settled in and know where to shop (AKA, avoid the tourist zones).

Cost of Living Index: 54.31

7. Santo Domingo, Dominican Republic

Santo Domingo is considered the oldest permanent European settlement in the New World, and comes with breathtaking colonial architecture. It also has everything you’ll need in terms of entertainment (museums, theaters, and beisbol stadiums). Santo Domingo is another one of those places where you can live very cheaply if you know where to go. You can get a meal out for as little as $7, or $42 at a mid-range restaurant.

Cost of Living Index: 53.74

6. Coimbra, Portugal

If you like the idea of retiring in a university town, Coimbra is a great option in Portugal. Its university town identity dates back to the 1500’s. In Coimbra, a single person can get by on $542/month without rent. Thanks to the large number of students in the town, there is also plenty of affordable temporary housing available, if you want to test the place out for 6 months or a year before deciding to stay for good.

Cost of Living Index: 52.58

5. Guatemala City, Guatemala

Guatemala City makes the list because it’s the only city in Guatemala with clear cost of living data available. But if you venture outside the capital, you’re likely to find even more affordable retirement locales. That said, Guatemala City is still much more affordable than living in the US, and it also offers the most amenities in the country.

Cost of Living Index: 48.35

4. Penang, Malaysia

Want to retire on a tropical island? Penang is a veritable paradise off the coast of mainland Malaysia. As a former British colony, English is widely spoken in the country, making it even more attractive to expat retirees. Rent in Penang is super affordable ($191/month, on average). If you’re brave enough to try street food, you can get some of the best in Southeast Asia, all very cheaply.

Cost of Living Index: 47.85

3. Cuenca, Ecuador

Cuenca is a quaint, colonial town nestled in the southern sierra of Ecuador. It’s the country’s third largest city, and has already built quite the expat population. Stay outside the historic center (called New Town), and you can live very affordably. You can get a meal at a local restaurant for as little as $3.25!

Cost of Living Index: 44.20

2. Bogotá, Colombia

Colombia is a great place to live if you’re worried about keeping up ties at home. It’s in the same time zone as much of the US (Central or Eastern time), making it easy to set up calls with people at home. If you live in Bogota (or many other cities around the country), you can get direct international flights right out of the city. A single person in Bogota spends around $430/month on regular expenses before rent.

Cost of Living Index: 37.27

1. And the winner is…. Puerto Vallarta, México

Puerto Vallarta, Mexico takes the cake in this list of the cheapest places to retire abroad. Especially since the dollar is so strong now, there are many opportunities to purchase property in the city or around the country. And if you don’t want to commit, a 1-bedroom apartment outside of city centre averages less than $166 per month. Pair that with gorgeous beaches, great entertainment and fine dining, what more could you want in a retirement locale?

Cost of Living Index: 36.34

Conclusion

If you’re on the lookout for the cheapest places to retire abroad, there’s never been as many attractive opportunities as now. Many developing countries have quickly become middle income, turning them into paradise retirement destinations that are both affordable and beautiful. On the other side, thanks to economic downturns of the last decade, you can find affordable homes in ancient Europe to spend your retirement years as well.

All you have to do is find a place that interests you and meets your retirement budget needs. Take these 15 suggestions as a starting point to find your cheapest places to retire!

Note: All cost of living data for this post came from Numbeo, one of my favorite tools on the internet. You can use it to compare the cost of living in different cities around the world, and find your own cheapest places to retire.

3 Responses to 15 Cheapest Places to Retire Abroad in 2017

I live in Phuket, Thailand and think it’s THE place to retire. I would never buy property here. There is an enormous property bubble that allow rents to be low and with crazy development going on here, going lower. I rent a beautiful two bedroom/2Bath house that’s elevated for parking and outdoor living under the house for $450/mo. It is a long way from the USA, however. You can’t decide on any of these places without living there for an extended period. I’ve visited many of these places over the years and many of them I could retire to…about half of them. Don’t go by price. Pick a few and give them a try.

I love data and use Numbeo.com almost daily. I’m sort of a geek on comparing different locations and their respective costs.

I always stress that the acid test is visiting someplace you have already researched. You can pretty quickly get comfortable with the trade-offs of what your life might look like. I think this is doubly true when your spouse has different metrics than you might!

Ian Bond is a private banking senior executive with over three decades of experience in wealth and asset management with Goldman Sachs, Credit Suisse, and Citigroup. He has built major businesses on four continents.

Despite his professional responsibility for assets over $100B and revenues over $1B, after the 2008 crash Ian was personally going broke. Within five years he destroyed his debt, became an expat in 2014, and built multiple streams of income to fund his imminent retirement. Ian is also the founder of MyRetirementRehab.me created to help other executives and professionals rehabilitate their finances and make a prosperous, enduring retirement a reality.